Physicians often ask, “With the high costs of medical school and possibly starting a practice, how can I spend more money on insurance, especially when I’m healthy?”
The reason is that there are benefits to buying life and disability insurance income protection at a younger age or early in the career track — some physicians even start during their residency.
It pays to start young
Qualifying for disability and life insurance requires proof of good health. Medical residents and new physicians can often sail through the required physical and receive the lowest possible rates because they’re still in peak health. Purchasing life and disability coverage at a young age means locking in these low rates for many years — even if physical or emotional health changes. And as you age and consider increasing coverage, you won’t have to go through another physical or face rate increases.
As Dial explains, it’s a very different story for physicians who wait until mid-career or later to start addressing income protection: “Physicians who wait are viewed as more risky, even if they are in reasonably good health.”
For example, they might have an injury from the past, or they’ve developed a history of depression or some other psychological or physical condition,” Dial says. “They’ll pay higher rates, or not get offered coverage at all — it happens every day.”
Physicians always have the option of reducing coverage later in life, when other asset accumulation or changes in lifestyle or career mean less need to rely on these protections. But when they’re still young, physicians can get the most coverage, when they need it most, at the lowest price.
Professionals who understand physician needs
Unlike auto or home insurance, disability coverage varies widely across providers — small differences in wording can make a difference. Both Dial and Michelin recommend that medical residents and new physicians work with someone dedicated to understanding their personal situation and finding out what they really need or want to do.
“The worst thing you can do is go out and get five quotes on something like disability protection,“ says Dial.
He explains that, “Price is a factor in the decision, but when it comes to income protection, the goal should be a policy that pays the most benefits in the most situations.”
A professional who understands the income and risk factors of physicians, and offers customized products, can be a tremendous advantage.
